Van on hire purchase?

manorpaul

Hi, I am going to file for BR next week but am trying to put things 'right' before I do. The main thing for me is to protect my van which I have on hire purchase. I spoke to an IP the other day and he said that it is the only form of transport in the household and I need it to go to work and earn a 'wage' as everyday I travel all over the country (I am a self employed electrical engineer). I have since then spoken to some one today from the Business Debtline as advised on here and she said she agreed with the IP who I spoke to BUT she said that he should of mentioned first that it depends what my terms and conditions state in the hire purchase agreement. After turning my place upside down I found it and the way its worded is so confusing and not very clear cut.
Does anyone know if BR 'over rides' the hire purchase agreement? Does the OR get involved first and examine my case? Are there any 'loopholes' in the Consumer Credit Act 1974?
Is there anyone out there in this position or has been and managed to retain their vehicle?
It may be worth mentioning that the vehicle was taken out on hire purchase on Feb 2008 for £9225 inc vat and interest, the remaining owing is £4363. I know that if I have paid off over a 1/3 there are some sort of consumer rights rights in the T&C's of the HP agreements?

Flyright

From what I can gather you will have to declare the van and HP. The OR will then write to the HP company to notify them of the bankruptcy. Dependant on the agreement the HP company may well repossess but it looks like there is plenty of equity so the OR can take over the agreement, sell the vehicle and pay back the HP remaining while keeping the balance for creditors or paying some back to you to enable you to have a vehicle. Even if it is needed for work the value/equity may be looked at as excessive.

JCS1

How much is the van worth now, and how much is there left to pay? Assuming the amount left to pay is more than what it is worth, the OR will send a letter of non-adoption and not get involved.

It is then down to the HP company to decide what to do.

manorpaul

Its valued around £3250 and £4363 is outstanding.

GEEGEE8

Surely that would make you unable to work then?

Aren't there rules for 'tools of the trade' ?

Flyright

If the HP outstanding is more than the value of the van then the OR is more likely not to adopt the agreement but you could have an issue with the OR not allowing the entirety of the HP payments as a neccessary expense. But then again the HP company may decide to repossess the vehicle anyway.

tigerfeet2006

Flyright wrote: »

If the HP outstanding is more than the value of the van then the OR is more likely not to adopt the agreement but you could have an issue with the OR not allowing the entirety of the HP payments as a neccessary expense. But then again the HP company may decide to repossess the vehicle anyway.

But if it is a business expense then surely it would come out of his gross income along with tax etc. before we get to what his net income is that the OR will be interested in. If you know what I mean?

manorpaul

Right, I phoned the CCCS today and asked about my van on HP and its what I thought. I will have to declare it my BR but I can keep it out of the BR and keep making the regular payments, otherwise it WILL be repossessed. No other way around it, hopes this helps others?

philnicandamy

That all depends on the receiver that deals with your case allowing you to keep making the payments...

Flyright

Yep, you don't get to decide whether the van is kept out of your bankruptcy or not, ultimately the HP company may still hold legal title and repossess or the OR may not allow you to pay at the same level

manorpaul

Flyright wrote: »

Yep, you don't get to decide whether the van is kept out of your bankruptcy or not, ultimately the HP company may still hold legal title and repossess or the OR may not allow you to pay at the same level

Right, I have just phoned the HP company that my van is with (GMAC) and spoke to someone, explained my situation and he was very helpful. I thought I was going to be told.......na thats it, we'll have your van back thanks, but no, he explained that I can pay off the remainder, keep paying the normal monthly amount or when the OR looks at it, payments may come down a bit but I CAN KEEP IT!!!!
I know some are saying that its down to the OR if I can keep it or not at the end of the day but it is my only form of transport I have and I work all over the country every day, surely that would be enough for the OR to let me keep it, especially if the OR will see that I have been in contact with my HP company and they have agreed to it?
WOW! The first bit of good news so far! That was my one and only fear!